2 Wants to Know spoke with an expert to answer your questions.
GREENSBORO, N.C. — Things happen. Maybe you get in a hit-and-run, or a tree falls on your house.
One family in the Triad was displaced on the Fourth of July after their home caught fire from improperly disposed of fireworks.
But does homeowner’s insurance cover that kind of costly mistake?
2 Wants to Know spoke with Christopher Cook from Alliance Insurance Services to answer those questions.
That house that went up in flames because of the fireworks that weren’t put out correctly, is that covered even though it was their fault?
“Yes, of course, we insure mistakes every day and this is this is a mistake. Could it have been avoided? Certainly, it could have been avoided. But this is one of the many reasons you have insurance and the homeowner’s insurance carrier will take care of this family,” said Cook.
What about a fire that was intentionally set?
“Intentional damage to your own property is going to be excluded. All day, every day, the homeowner’s insurance company is not going to compensate the homeowner who intentionally set fire to the property,” said Cook.
What happens when homes on either side of the fire get damaged from an intentionally set fire?
“Well, I would encourage those homeowners who receive damage to go ahead and file a claim with their homeowners carrier. And I only say that just to expedite the process,”
“This is going to fall back to the individual who committed arson if they are indeed convicted that they would be liable. The liability insurance portion of their homeowner’s policy is going to be responsible to pay for these neighbors’ damages,” said Cook.
What about rental cars? Should you get coverage for that? What is a collision damage waiver and how does it work?
“If you carry comprehensive and collision, is going to pay for damage to the rental car, heaven forbid you have an accident. What they are not going to pay for is that rental lost income to the [rental car company],
“Folks just need to be very aware of if they decline the collision damage waiver, and perfectly fine if you choose to do that, but if you have an accident, you’re going to owe the rental car agency their lost revenue back,” said Cook.
“You can check with various sources to see if you already have it. For instance, there are many credit card providers that offer that to all their customers. American Express, Capital One, and some others give Collision Damage Waiver coverage to their clients as a perk for being a member,” Cook said.
You will have to have made the reservation with that credit card.
What does liability coverage cover for car insurance? Is it required?
“Liability insurance, I like to say, covers what you do to someone else. You have an automobile accident, they are hurt. Your liability insurance policy pays for those injuries,” Cook said.
What do you do if you believe your insurance company is not handling your claim in a timely manner?
“Communicate. Communicate that directly to your adjuster if you need assistance. Communicate that with your agent. If neither of those folks are helping, the Department of Insurance has a consumer advocacy arm and they do a great job,” said Cook.
How can you lower your car insurance bill?
“The driving apps that are out there are earning folks up to 30 even 40 percent discounts. Paying the bill in full for the year is a lot of times a really big discount. Having a good quality credit score can be a driver of lower insurance premiums,” said Cook.
Do hit-and-run accidents raise your insurance?
“I hate the answer to this question because I don’t think it’s fair, however, the answer is yes.”
What if the car is stolen or wrecked? Who’s liable?
“Your liability insurance would pay for the claims that occurred. Your insurance is going to pay all up.”
If someone driving my car is not on my policy and then has a wreck, is my car covered?
“More and more likely the answer to that is no. Carriers in North Carolina are choosing to decline coverage for unlisted drivers because you are required to list all drivers of your vehicle.”
“There’s exceptions to that. Occasional operator, a friend borrowed your car, there’s things like that. But where rate evasion is the issue, and so if you don’t list your son or your cousin or your mom who lives in your house and you know they’re driving your car every day, they are going to decline the claim because you weren’t honest on the application,” said Cook.
What happens if a tree falls on your car and you only have liability insurance?
“You need to have comprehensive coverage to be covered for damage from nature,” said Cook.
Watch the full interviews in the videos above.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.